Transfer of Shares 19. (1) The company shall not accept a subscription for common shares of the company by any person as a person who fulfils the statutory conditions and shall refuse to allow any transfer of those shares that were issued to persons who fulfilled the statutory conditions to be made or recorded in a register of transfers of the company unless a declaration required by the directors under subsection 18(2) has been submitted to the company and the subscriber or transferee appears from the declaration to be a person who fulfils the statutory conditions. (2) Notwithstanding subsection (1), where, in the case of a subscription for or transfer of any common shares of the company by a subscriber or to a transferee in respect of whom that subsection would otherwise apply, it appears that the number of common shares of the company that would be held by the subscriber or the transferee, as shown by the records of the company, would not be more than five hundred if the subscription were accepted or the transfer allowed, the company is entitled to assume (a) that the subscriber or the transferee is not and will not be associated with any other holder of common shares of the company that were issued to persons who fulfilled the statutory conditions; and (b) unless the address to be recorded in the register of shareholders of the company for the subscriber or transferee is a place outside Canada, that the subscriber or the transferee is a resident of Canada. R.S., c. T-4, s. 19.